Cannasat Announces Signing of Letter of Intent for In-Licensing of Parkinson's Disease Technology

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2010) -
Cannasat Therapeutics Inc. (TSX VENTURE:CTH), a specialty clinical development
pharmaceutical company targeting CNS illness, announced today that it has
entered into a Letter of Intent ("LOI") with Adagio Pharmaceuticals Ltd.
granting Cannasat the option to execute a proposed exclusive, worldwide
agreement to license all intellectual property relating to APL-130277, a
reformulation of an approved Parkinson's drug.

The two parties are negotiating an exclusive worldwide
license that would result in Cannasat assuming product development and
commercialization rights to APL-130277 from Adagio in return for development
milestones and royalties to Adagio, including common shares of Cannasat. The
license agreement includes an exclusive option period for the first 12 months
which allows Cannasat to conduct further due diligence and proof-of-concept
studies for APL-130277 prior to executing the full license. All aspects of the
option and license agreements are subject to Board approval.

APL-130277 is a novel oral formulation of an approved
drug for Parkinson's patients designed to deliver significant clinical benefits
over the current marketed treatment. The drug will treat patients with moderate
to severe PD and address a significant unmet clinical need as expressed by
clinicians and patients. The drug is expected to undergo accelerated approval
through 505(b)(2) FDA regulatory pathway with the US FDA and a similar pathway
with other international regulatory agencies. This well developed regulatory
path could result in a New Drug Approval application being submitted in late
2014 or early 2015. APL-130277 has the potential to address a significant
underserved portion of $3 Billion+ Parkinson's Disease market. The project fits
well into Cannasat's new drive to expand its CNS project portfolio and
leverages Cannasat's considerable experience in drug formulation and clinical
development.

It should be noted that Anthony Giovinazzo, Cannasat's
President and CEO, is also a director, officer and shareholder of Adagio, a
private holding company for the APL-130277 asset only. Steps have been
taken to address any potential conflict of interest, including the engagement
of independent third party business development consultants to assist in
negotiations. The Board of Cannasat will review and approve the final
agreement.

About Cannasat
Therapeutics

Cannasat is a specialty clinical development
pharmaceutical company targeting diseases of the brain. Cannasat has a
proprietary formulation technology for cannabinoid drug candidates, which may
be used to treat neuropathic pain associated with multiple sclerosis and
cancer, as well as for nausea/vomiting and appetite stimulation. Cannasat's
strategy is to grow its portfolio of drug candidates through in-licensing and
acquisitions, and to advance projects to Phase 2 proof-of-concept clinical
studies. Once the drug candidates are sufficiently derisked, Cannasat intends
to out-license the programs to the appropriate Pharma marketing partners for a
combination of upfront, milestone, and royalty payments. More information about
Cannasat (TSX VENTURE:CTH) is
available at www.cannasat.com.

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